News Release 18 May 1999

FOR IMMEDIATE RELEASE

EUB REINSTATES ENCAL RIMBEY PIPELINE PERMIT

Calgary, Alberta (18 May 1999) The Alberta Energy and Utilities Board (EUB) has reinstated Pipeline Approval No. 32552 to Encal Energy Ltd. following a public hearing held in Rimbey, Alberta on 5 April 1999.

Encal had applied to the EUB for a permit to construct and operate a sour natural gas pipeline from the Wilson Creek area (6-18-43-4W5) for a distance of 37.5 kilometres to the existing Gulf Rimbey gas plant at 2-5-44-1W5. The pipeline would carry sour gas containing up to two per cent hydrogen sulphide (H2S). The EUB granted the permit on 11 February 1999.

Subsequently, area residents requested that the Board review its decision to approve the pipeline, pursuant to Section 43 of the Energy Resources Conservation Act. The Board determined the concerns raised were valid and within its jurisdiction, and ordered that a public hearing be held.

In its decision to reinstate the permit, the Board considered the potential impacts of both construction and operation of the pipeline. In accepting the company's original application, the Board found that Encal had committed to a number of measures which are expected to mitigate many of the concerns raised by the public. The Board also found that the pipeline, as proposed, will result in only minimal environmental impact and will have a net positive effect on the local and provincial economies.

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For further information please contact:
Greg Gilbertson, Senior Advisor
EUB Communications
Tel: (403) 297-3648
Fax: (403) 297-3757

MR 99-6